As a company owner, understanding the number of full-time employees is crucial for several reasons. While part-time employees play a valuable role, full-time employees are often the backbone of your organization, providing consistency and reliability. Tracking the growth and changes in your full-time workforce not only reflects your company’s progress but also affects the work environment and your ability to attract potential employees.
Number of Full-Time Employees
As the owner of a company, you probably have two types of employees: full-time and part-time. However, since part-time employees are only contributing a small amount of their time, it’s the full-time employees that are your go-to in a particular situation.
Granted, in certain situations, a full-time employee might become a part-time one – depending on the finances of your company and the preferences of the worker. Not only will an increase in the number of workers be synonymous with the growth of your company, but it will also express an improvement in the environment for any potential employees.
This is precisely why you might want to keep tabs on the number of full-time employees – and how much their numbers grow. At first, it may seem fairly confusing – particularly if you have a bigger company. However, with the correct data, you should be able to see how many employees you currently have on board – and how that number has changed over the time.
What is FTE and Why Does it Matter?
The FTE (Full-Time Employees) is a metric that measures precisely how many full-time hours have been completed by the company. To get that number, you will have to use both the part-time and full-time count – which you will add in several simple calculations.
To reach the FTE number, you will have to take the number of part-time employees and see how they would fare on a full-time basis. After that, you may and the full-time employees into a final count.
Why does this matter, you may ask? Well, your number of full-time employees shows whether or not you can be considered an applicable large employer (ALE, so to speak).
And no, we’re not talking about delicious beverages here; as an ALE, it means that you’ve had at least 50 employees last year and that your numbers keep growing. It means that you are able to provide health insurance now and that you have all it takes to keep full-time users – on a full time.
How to Calculate Your Full-Time Employees Number
As mentioned, while this metric leads you to think about full-time employees – but in fact, it is a mix between full-time and part-time ones. Basically, what matters is to know the full-time hours that your company counts. Here’s how you do it:
- Take the number of part-time workers that you have
- Add the number of hours that those workers check in every week
- Divide the result by 30 and round it into the closest whole number
- Add the number of full-time employees that you have contracted
With that, you have your FTE number – and how many full-time employees you can say you really have.
Keeping track of the full-time employees and the hours that they bring out over time is crucial for every business. Unless you have an average, you may not be able to take on the correct number of tasks. This, in turn, can cause your company to be swamped by tasks – or realize that they do not have enough.
Pleasure in the job puts perfection in the work.
Changes in the Number of Full-Time Employees
Here are some key points to consider
Full-time employees play a crucial role in shaping company culture. They often have a more profound sense of commitment, engagement, and loyalty than part-time employees. This can foster a more robust company culture built on shared values, increased collaboration, and a sense of belonging.
Full-time employees are more likely to be deeply integrated into teams and have established relationships with their colleagues. An increase in full-time staff can enhance teamwork by providing a larger pool of resources, expertise, and a higher level of availability for collaboration.
Full-time employees contribute to the overall productivity and performance of the organization. Their consistent presence and focus on company objectives enable them to contribute significantly to projects, goals, and targets. An increase in the number of full-time employees can lead to improved organizational performance through enhanced productivity, efficiency, and better utilization of resources.
Full-time employees often have greater opportunities for career development, job security, and benefits. When the number of full-time employees increases, it can create a more attractive work environment for potential hires and improve employee satisfaction and engagement.
In conclusion, recognizing the value of full-time employees and utilizing metrics such as FTE (Full-Time Equivalents) can provide insights into the workforce and contribute to effective business management. Understanding the impact of changes in the number of full-time employees on company culture, teamwork, and overall organizational performance is essential for sustainable growth. Additionally, achieving the status of an Applicable Large Employer (ALE) brings forth responsibilities, particularly regarding offering health insurance. By embracing these responsibilities and providing comprehensive benefits, companies demonstrate their commitment to employee well-being and foster a positive work environment. Striving to become an ALE showcases dedication to growth and success while ensuring the holistic needs of the workforce are met. Ultimately, valuing full-time employees, leveraging metrics, and fulfilling ALE responsibilities contribute to organizations’ overall success and sustainability.